Low interest rates have spurred a recovery but it’s time to let them go

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Philip Hammond might be under pressure but he should resist the urge to focus purely on short-term political gripes

It might not feel like it, but the recovery of the global economy that started after the financial crisis is now significantly longer than previous recoveries. We are overdue a downturn. Unfortunately, the usual tools for responding to a recession are all already maxed out. So, when we do hit the next speed bump, Philip Hammond and other stewards of the economy will find they have nowhere to turn.

On Monday, the Institute for Fiscal Studies outlined Hammond’s difficult position. Because of the UK’s exceptionally weak growth in productivity, achieving the Chancellor’s fiscal mandate – to eliminate the deficit in the next seven years – looks increasingly out of reach.